An Economist’s Insight
In the realm of precious metals, gold has been glittering exceptionally bright as it soared to a record high last Friday. Yet, amidst this shining performance, economist and gold enthusiast Peter Schiff noted a peculiar lag in the gold mining sector, foreseeing a potential catch-up in the near future.
Gold vs. Gold Miners
What Happened: While gold futures triumphantly settled at $2,186.20, marking a 0.97% increase, the reaction in exchange-traded funds representing gold mining stocks was curiously subdued. The VanEck Gold Miners ETF (GDX) ended the day with a marginal gain of 0.10% at $29.64, whereas the VanEck Junior Gold Miners ETF (GDXJ) witnessed a slight dip of 0.42% to $35.93.
The Call to Action
Schiff, anticipating an imminent surge, asserted, “An explosive move up can’t be that far away. So buy the miners before the crowd realizes what’s going on.”
Factors at Play
Delving into the potential reasons behind the muted response among mining stocks, Schiff suggested that investor attention might be diverted towards Bitcoin ETFs, potentially hindering the rise of gold mining equities.
Looking Ahead
Schiff hinted at a bullish start for gold on Monday, projecting an opening at $2,200, particularly if Bitcoin faces a weekend setback. This speculation sets the stage for an interesting week in the precious metals market.
Investor’s Radar
With the possibility of the Federal Reserve reversing rate hikes, gold stocks could be poised for further gains. As gold tends to shine brighter when the dollar weakens due to rate cuts, these equities may offer an attractive investment avenue.
Stock Picks
For those eyeing potential opportunities in the gold mining landscape, a curated list awaits:
- B2Gold Corp. (BTG)
- Centerra Gold Inc. (CGAU)
- DRDGOLD Limited (DRD)
- Barrick Gold Corporation (GOLD)
- Hecla Mining Company (HL)
- New Found Gold Corp. (NFGC)
- NovaGold Resources Inc. (NG)
- Pan American Silver Corp. (PAAS)
- Seabridge Gold Inc. (SA)
- Sandstorm Gold Ltd. (SAND)
Parameters for Selection
These selections were scrutinized based on specific criteria:
- Market cap exceeding $300 million
- Average daily trading volume over 500,000
- Analyst rating of “Buy” or higher
- Average analysts’ price target showing a 30% upside from current market price
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